Biopharmaceutical Company to Expand Existing Facility in San Diego

New facility would be for expanded corporate headquarters, research and warehousing

SAN DIEGO, Nov. 7 /PRNewswire-FirstCall/ -- Favrille, Inc. (Nasdaq: FVRL) today announced that it has signed an amended lease agreement to expand its existing facility to support commercial-scale manufacturing of FavId(R), the Company's lead product candidate currently in a Phase 3 clinical trial for the treatment of follicular B-cell non-Hodgkin's lymphoma (NHL). This 80,000-square foot facility will be devoted to manufacturing and is intended to give Favrille the capacity to produce FavId to meet commercial needs while continuing to support additional clinical trials. In addition, the Company has committed to lease an adjacent 48,000-square foot facility to house Favrille's corporate headquarters and research and warehousing operations.


"We anticipate that the capacity of our expanded facility will be sufficient to supply FavId for up to 4,000 patients per year," said John P. Longenecker, Ph.D., President and Chief Executive Officer of Favrille. "This expansion represents a significant milestone in our transition from a clinical development company to a commercial franchise. We expect to finance our facility expansion through landlord improvement allowances and traditional debt without the need to use equity to finance this project."

The current estimated cost of the expansion for both facilities, including equipment, is $24 million, of which up to an aggregate of $11.2 million will be provided by the landlord in the form of a tenant improvement allowance. The Company expects to finance the additional capital expenditures of approximately $13 million through debt financing. Commencing in February 2007, lease expenses for the existing facility will increase from the amounts set forth in the original lease agreement. The lease expenses for the headquarters facility will be phased in during 2006 and 2007. In mid-2006, the existing letter of credit between Favrille and the landlord will be increased by approximately $2 million. Unless earlier terminated, the lease will expire on June 30, 2025.

Favrille continues to manufacture FavId in its existing facility to support its ongoing Phase 3 clinical trial. The Company expects to complete patient enrollment in this pivotal Phase 3 trial by year-end or soon thereafter.

About Favrille, Inc.

Favrille, Inc. is a biopharmaceutical company focused on the research, development and commercialization of targeted immunotherapies for the treatment of cancer and diseases of the immune system. The Company's lead product candidate, FavId, is based upon unique genetic information extracted from a patient's tumor. FavId is currently under investigation in a pivotal Phase 3 clinical trial for patients with follicular B-cell NHL and Phase 2 clinical trials in other B-cell NHL indications. The Company is developing additional applications based on its immunotherapy expertise and proprietary manufacturing technology, including a second product candidate, FAV-201, for the treatment of T-cell lymphoma.

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